BTS Releases February Passenger Airline Employment Data;

February 2014 Employment Up 0.4 Percent from February 2013

U.S. scheduled passenger airlines employed 381,985 workers in February 2014, 0.4 percent more than in February 2013, the U.S. Department of Transportation's Bureau of Transportation Statistics (BTS) reported this week. February was the third consecutive month that full-time equivalent (FTE) employment for U.S. scheduled passenger carriers was higher than the same month of the previous year (Tables 1, 2, 3).

The February 2014 FTE total for scheduled passenger carriers was 1,571 more than in February 2013 (Table 3). Scheduled passenger airline categories include network, low-cost, regional and other airlines. Historical employment data can be found on the BTS web site.

The five network airlines that collectively employ two-thirds of the scheduled passenger airline FTEs reported 0.1 percent more FTEs in February 2014 than in February 2013 (Table 7). US Airways, American Airlines, Alaska Airlines and Delta Air Lines increased FTEs from February 2013 while United Airlines reduced FTEs (Table 9). Network airlines operate a significant portion of their flights using at least one hub where connections are made for flights to down-line destinations or spoke cities.

Of the six low-cost carriers, four - Spirit Airlines, Allegiant Airlines, Virgin America and JetBlue Airways - reported an increase in FTEs from February 2013 while two - Frontier Airlines and Southwest Airlines - reported a decline (Table 12). Low-cost airlines operate under a low-cost business model, with infrastructure and aircraft operating costs below the overall industry average.

Among the 13 regional carriers, four carriers reported reduced employment levels in February compared to the previous year: Endeavor Airlines, American Eagle Airlines, Chautauqua Airlines and Shuttle America (Table 15). Regional carriers typically provide service from small cities, using primarily regional jets to support the network carriers' hub and spoke systems.

Carrier Groups: The five network airlines employed 66.8 percent of the total number of FTEs employed by all scheduled passenger airlines in February, the six low-cost carriers employed 18.4 percent and the 13 regional carriers employed 13.2 percent (Table 4). The three airlines with the most FTEs in February – United, Delta and American – employed 56.0 percent of the month's total passenger airline FTEs (Tables 3, 6). These three airlines carried 40.7 percent of total passengers traveling on U.S. airlines in January, the most recent month available. See Air Traffic press releases.

Top employers by group: United employed the most FTEs (80,694) in February among the network airlines, Southwest employed the most FTEs (45,091) among low-cost airlines, and American Eagle Airlines employed the most FTEs (10,955) among regional airlines. Four of the top five employers in the industry are network airlines (Table 6).

Airline Mergers: Airlines that announce mergers begin joint reporting following U.S. Department of Transportation approval and issuance of a single economic certificate. Southwest and AirTran Airways began joint reporting of their financial data in April 2012 under a waiver granted by the Department, while reporting the rest of their data as separate carriers. American and US Airways, following their December 2013 merger announcement, will report separately until the Department approves single carrier reporting and a single economic certificate is issued.

In March 2014 (for January 2014 data), the Department began displaying combined on-time performance data, mishandled baggage data, oversales data and complaint data in its Air Travel Consumer Report for Southwest and Air Tran as well as for American and U.S. Airways because both sets of airlines are sufficiently integrated that consumers perceive them as a single airline. The Air Travel Consumer Report also continues to display the separate performance of each of these airlines and will continue to do so until a single economic certificate is issued.

Network Airlines

Recent Changes: The network airlines employed 203 more FTEs in February 2014 than in February 2013, a 0.1 percent increase. Four of the five network carriers reported an FTE increase from February 2013 while United reported a decrease (Tables 8, 9).

Longer-term Changes: The network airlines employed 1,598 fewer FTEs in February 2014 than in February 2010, a 0.6 percent decrease. American (-10.3 percent) and Delta (-1.4) reported a decrease in FTE employment from 2010 to 2014 while US Airways (7.1 percent) and Alaska (3.6) reported increases. United's numbers for the two years are not directly comparable because of the intervening merger. United reported 5.0 percent more FTEs in February 2014 than United and Continental Airlines reported separately in February 2010 (Tables 8, 9).

Low-Cost Airlines

Recent Changes: The six low-cost airlines reported 0.7 percent more FTEs as a group from February 2013 to February 2014. Frontier and Southwest reported year-to-year decreases while the remaining four airlines reported increases (Table 12).

Longer-term Changes: The low-cost carriers employed 6,290 more FTEs in February 2014 than in February 2010, a 9.9 percent increase. Spirit reported the largest percentage increase, 81.1 percent, while Frontier was the only low-cost carrier to report a decline, 29.6 percent. February 2014 numbers for Southwest are not directly comparable to 2010 because of the intervening merger. Southwest reported 5.9 percent more FTEs in February 2014 than Southwest and AirTran reported separately in February 2010 (Table 12).

Regional Airlines

Recent Changes: Regional airlines reported a 0.5 percent increase in FTE employment in February 2014 compared to February 2013; one regional airline discontinued service since a year ago. Republic Airlines and Mesa Airlines reported the largest percentage increases in FTEs from February 2013 to February 2014. Endeavor and Chautauqua reported the largest percentage decreases (Table 15).

Longer-term Changes: The 13 regional carriers operating in February employed 2.9 percent fewer FTEs in 2014 than the 18 carriers operating in February 2010. Mesa reported the largest percentage decline followed by Horizon Air. GoJet Airlines reported the biggest four-year percentage gain. The ExpressJet/Atlantic Southeast combination reported 3.4 percent more FTE's in February 2014 than the two airlines reported separately in February 2010. The Endeavor/Mesaba combination reported 29.0 percent fewer FTE's in February 2014 than the two airlines reported separately in February 2010 (Table 15).

Endeavor operated as Pinnacle prior to August 2013.

Reporting Notes

Airlines that operate at least one aircraft that has more than 60 seats or the capacity to carry a payload of passengers, cargo and fuel weighing more than 18,000 pounds must report monthly employment statistics.

The "Other Carrier" category generally reflects those airlines that operate within specific niche markets such as Hawaiian Airlines and Island Air Hawaii serving the Hawaiian Islands.

Data are compiled from monthly reports filed with BTS by commercial air carriers as of April 10. Additional airline employment data and previous press releases can be found on the BTS website. BTS has scheduled release of March passenger airline employment data for May 22.

Table 1: Change from Previous Year in Scheduled Passenger Airline Full-time Equivalent Employees* by Airline Group

Most recent 13 months - percent change compared to same month the previous year

Source: Bureau of Transportation Statistics

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-

time employee.

** Includes network, low-cost, regional and other carriers. Other Carriers generally operate within specific

niche markets. They are: Hawaiian Airlines, Sun Country Airlines and Island Air Hawaii.

Note: Percent changes based on numbers prior to rounding.

Note: See Table 2 for all passenger airlines, Table 7 for Network, Table 10 for Low-Cost and Table 13 for Regional.

Table 2: Change from Previous Year in Scheduled Passenger Airline* Full-time Equivalent Employees**

Percent change compared to same month of the previous year

Source: Bureau of Transportation Statistics

* Includes network, low-cost, regional and other carriers.

** Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.

Note: Percent changes based on numbers prior to rounding.

Table 3: Scheduled Passenger Airline Full-time Equivalent Employees* by Month 2010-2014

FTE numbers in thousands (000's)

Source: Bureau of Transportation Statistics

* Includes network, low-cost, regional and other carriers.

** Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.

Note: Percent changes based on numbers prior to rounding.

Table 4: Airline Group Full-time Equivalent Employees*, February 2010-2014

FTE numbers in thousands (000's)

Source: Bureau of Transportation Statistics

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.

** Includes network, low-cost, regional and other carriers.

Table 5: Year-to-Year Change in Airline Group Full-time Equivalent Employees*, February 2010-2014

Percent change in FTEs from the same month of the previous year

Source: Bureau of Transportation Statistics

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.

** Includes network, low-cost, regional and other carriers.

Table 6: Top 10 Airlines, February 2014

Ranked by Number of Full-Time Equivalent Employees*

FTE numbers in thousands (000's)

Source: Bureau of Transportation Statistics

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.

** See Table 9 for Network, Table 12 for Low-Cost and Table 15 for Regional.

Table 7: Network Airline Year-to-Year Change in Full-time Equivalent Employees* from the Previous Year

Percent change compared to same month of the previous year

Source: Bureau of Transportation Statistics

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.

Table 8: Network Airline Full-time Equivalent Employees* by Month 2010-2014

FTE numbers in thousands (000's)

Source: Bureau of Transportation Statistics

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.

Note: Percent changes based on numbers prior to rounding.

Table 9: Network Airline Full-time Equivalent Employees*, February 2010-2014

(FTEs for February of each year. Ranked by February 2014 FTEs)

FTE numbers in thousands (000's)

Source: Bureau of Transportation Statistics

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee

** United Airlines and Continental Airlines merged and began reporting combined numbers in January 2012.

Note: Percent changes based on numbers prior to rounding.

Table 10: Low-Cost Airline Year-to-Year Change in Full-time Equivalent Employees* from the Previous Year

Percent change compared to same month of the previous year

Source: Bureau of Transportation Statistics

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.

Note: Percent changes based on numbers prior to rounding.

Table 11: Low-Cost Airline Full-time Equivalent Employees* by Month 2010-2014

FTE numbers in thousands (000's)

Source: Bureau of Transportation Statistics

Note: Percent changes and averages based on numbers prior to rounding.

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.

Table 12: Low-Cost Carrier Full-time Equivalent Employees,* February 2010-2014**

(FTEs for February of each year. Ranked by February 2014 FTEs)

Source: Bureau of Transportation Statistics

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.

** Southwest Airlines and AirTran Airways merged and began reporting combined numbers in April 2012.

Note: Percent changes based on numbers prior to rounding.

Table 13: Regional Airline Year-to-Year Change in Full-time Equivalent Employees* from the Previous Year

Percent change compared to same month of the previous year

Source: Bureau of Transportation Statistics

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.

Note: Percent changes based on numbers prior to rounding.

Table 14: Regional Airline Full-time Equivalent Employees* by Month 2010-2014

FTE numbers in thousands (000's)

Source: Bureau of Transportation Statistics

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.

Note: Percent changes based on numbers prior to rounding.

Table 15: Regional Airline Full-time Equivalent Employees*, February 2010-2014

(FTEs for February of each year. Ranked by February 2014 FTEs)

Source: Bureau of Transportation Statistics

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.

** ExpressJet Airlines and Atlantic Southeast Airlines began reporting combined numbers in January 2012.

*** Endeavor Airlines operated as Pinnacle prior to August 2013. Pinnacle Airlines and Mesaba Airlines began reporting combined numbers in January 2012.

# Effective July 2012 Chautauqua Airlines began reporting employment data.

Effective the end of March 2013, Executive Airlines ceased operations.

# Effective the end of September 2012, Colgan Airlines ceased operations.

Effective the end of October 2012, Comair ceased operations.

# Effective the end of March 2011, Lynx Airlines ceased operations.

N/A: Carriers did not meet the standard for filing, was no longer operating, merged with another operating carrier or failed to file. See previous notes.

Note: Percent changes based on numbers prior to rounding.